Alabama vs Mississippi Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$85,131
in Alabama
$87,209
in Mississippi
Each cell = 1% of purchasing power. Green = value, red = gap.
Spending breakdown
Estimated annual spending on a $75,000 salary
What things actually cost
Real dollar costs side by side
Category breakdown
| Category | Alabama | Mississippi | Difference |
|---|---|---|---|
| Housing | 71.2 | 71.6 | -1% |
| Groceries | 97.5 | 95.5 | +2% |
| Utilities | 98.0 | 89.4 | +10% |
| Transportation | 90.5 | 88.3 | +2% |
| Healthcare | 91.2 | 94.3 | -3% |
| Dining & Misc | 95.1 | 91.8 | +4% |
| Overall | 88.1 | 86.0 | +2% |
Index values relative to national average (100). Positive difference = more expensive in Alabama.
What things actually cost
| Item | Alabama | Mississippi | Difference |
|---|---|---|---|
| Median home price | $220,000 | $175,000 | +$45,000 |
| Average 2BR rent | $997/mo | $1,002/mo | $5 |
| Gas price | $3.13/gal | $3.05/gal | +$0.08 |
| Electric bill | $105/mo | $97/mo | +$9 |
| Infant childcare | $7,871/yr | $6,868/yr | +$1,003 |
Salary equivalent: Alabama → Mississippi
What a Alabama salary buys you in Mississippi, adjusted for cost of living.
| Salary in Alabama | Equivalent in Mississippi | Difference |
|---|---|---|
| $50,000 | $48,808 | +$1,192 |
| $75,000 | $73,212 | +$1,788 |
| $100,000 | $97,616 | +$2,384 |
| $150,000 | $146,425 | +$3,575 |
| $200,000 | $195,233 | +$4,767 |
Positive = your money goes further in Mississippi. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Alabama is 2% more expensive than Mississippi overall. Alabama has an index of 88.1 vs 86 for Mississippi (national average = 100).
FAQ
Is it cheaper to live in Alabama or Mississippi?
Mississippi is cheaper to live in. Alabama is 2% more expensive overall. The biggest driver is housing — median home prices are $220,000 in Alabama vs $175,000 in Mississippi.
Is Mississippi cheaper than Alabama?
Yes, Mississippi is 2% cheaper than Alabama overall based on the MERIC/C2ER cost-of-living index. Housing, groceries, and utilities all factor into the difference.
Is Alabama more expensive than Mississippi?
Yes, Alabama is 2% more expensive than Mississippi based on the MERIC/C2ER composite index. Housing is typically the largest factor in the difference.
What salary in Mississippi equals $100,000 in Alabama?
To maintain the same purchasing power as a $100,000 salary in Alabama, you would need approximately $97,616 in Mississippi. This is based on the overall cost-of-living index (88.1 vs 86).
How do housing costs compare between Alabama and Mississippi?
Housing is significantly cheaper in Mississippi. Median home prices are $220,000 in Alabama vs $175,000 in Mississippi — a $45,000 difference. Average 2-bedroom rent is $997/mo vs $1,002/mo.
What costs more in Alabama vs Mississippi?
Utilities is 10% higher in Alabama (index 98 vs 89.4). Dining & Misc is 4% higher in Alabama (index 95.1 vs 91.8). Healthcare is 3% lower in Alabama (index 91.2 vs 94.3).
Is gas cheaper in Alabama or Mississippi?
Gas averages $3.13/gallon in Alabama and $3.05/gallon in Mississippi — a $0.08 difference per gallon.
Alabama vs Mississippi cost of living — how do they compare?
Alabama has an overall cost-of-living index of 88.1 and Mississippi has 86 (national average = 100). Alabama is 2% more expensive overall. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Alabama and Mississippi?
Cost of living is only part of the picture — state income taxes also affect your take-home pay. Use the Alabama vs Mississippi paycheck comparison to see how a specific salary compares after federal and state taxes, FICA, and deductions.
Where does this cost of living data come from?
Cost-of-living indices are from the MERIC/C2ER 2025 Annual Average. Dollar amounts use AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), Zillow home values (2024-2025), and BEA Regional Price Parities.
Related tools
- Alabama Cost of Living — Housing, groceries, gas, and more
- Mississippi Cost of Living — Housing, groceries, gas, and more
- Alabama vs Mississippi Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Alabama — How much house can you afford?
- House Affordability in Mississippi — How much house can you afford?
- Compare any two states
Based on MERIC/C2ER 2025 composite indices and publicly available price data. Cost of living varies significantly by metro area within a state. These are statewide averages.